Fortis May Business Update

Welcome to the Fortis May newsletter!

Summer 2023 is almost here, which is much needed after what feels like a never-ending winter.  

As the days begin to warm and the rain (hopefully) subsides, businesses must remain vigilant and prepared for the challenges that may arise due to the current economic climate.

There’s no beating around the bush; the UK economy shows signs of a slowdown.

Yes, you’ve likely been watching the economy like a hawk, and it’s true, there is a risk of a recession looming. We’ve been closely monitoring the news and financial reports, too.

It appears the UK is predicted to be the only major economy to see a downturn this year, but that doesn’t mean businesses can't expect growth and profits. To give your business the best advantage, it’s time to take proactive measures to ensure you remain profitable and sustainable through these uncertain times.

In this month’s newsletter, we will discuss some of the factors businesses should be mindful of in May 2023 and provide practical tips on actions you can take to mitigate the impact of a potential recession. 

At Fortis, our team has decades of experience supporting businesses and helping them navigate economic downturns.

We never want you to feel alone; we’re by your side every step of the way.

With the proper approach and planning, your business can not only survive but thrive through a recession.

We’ve got this!

Thank you for subscribing to our newsletter, and we look forward to helping your business succeed.

What You Need to Know: Employment Law Update - Redundancy Packages

The Office for National Statistics reports that the UK has seen a rise in redundancies during the first quarter of 2023, almost pushing us towards pre-pandemic levels. 

Is your business facing financial difficulties? 

Redundancies may be your only option, but you must be vigilant with your next steps. Always keep your employees' well-being at the forefront of your decisions.

We’re all experiencing the hardships of the cost of living crisis and everything in between. Empathy will be your greatest tool.

But let’s look at redundancies from a legal standpoint.

As a UK business owner, it's important to understand the current laws surrounding redundancy pay. As of April 2022, the maximum amount of a week's pay to calculate redundancy pay has increased from ￡538 to ￡571.

According to the UK government website, employees' maximum statutory redundancy pay is now ￡17,130. 

This calculation is based on a maximum weekly income of ￡571, and the maximum length of service that can be considered is 20 years.

As an employer, it’s the law that you follow these rules when making redundancies. Otherwise, you might end up with a worse headache. Any unfair or discriminatory redundancies could result in legal action being taken against you.

For business owners, it's essential to take the following actions when making redundancies:

1. Ensure you comply with the rules on redundancy pay and any other legal requirements.
2. Treat employees fairly and avoid any discrimination in the redundancy process.
3. Communicate clearly with employees about the redundancy process, their entitlements, and any available support.
4. Consider alternative options to redundancy, such as redeployment or reduced hours.
5. Seek professional advice from an employment lawyer, insolvency expert, or HR specialist if you need clarification on any aspect of the redundancy process.

By following these steps, you can ensure you handle redundancies fairly and legally while minimising the impact on your employees.

Ensure you keep up-to-date with any changes to employment law to avoid any potential legal issues and maintain a positive working relationship with their staff.

The GOV.UK website has all you need to know about current employment laws in the UK.

It’s worth refreshing yourself!

In the News: What a Recession Means for Your Business

Let’s address the elephant in the room: the impact of COVID-19 on the UK economy and what this means for businesses in May 2023.

According to the BBC, the pandemic caused the UK economy to experience its most significant contraction in more than 300 years in 2020, and the recovery has been uneven and gradual. Some sectors have bounced back and seen growth, especially online retail. It seems shoppers still prefer the convenience of home delivery rather than braving the cold!

Other sectors, such as hospitality and beauty, are still struggling. Much of this comes down to increased overheads, including rent and energy, making it difficult for smaller businesses to profit. There are concerns about the long-term impact of the pandemic on the economy, and it's hard to predict how the next few years will go. 

Businesses need to be aware of this environment's potential risks and opportunities. On the one hand, there may be opportunities to take advantage of changes in consumer behaviour, such as increased demand for e-commerce and remote services. On the other hand, there may be challenges posed by supply chain disruptions, labour shortages, and ongoing uncertainty.

To navigate this uncertain terrain, businesses should consider the following:

1. Assess your sector's potential risks and opportunities and adjust your business strategy accordingly.
2. Maintain a solid online presence and explore new ways of engaging with customers in the digital space.
3. Stay on top of any government policy and regulation changes that may affect your business. Ensure you research industry-specific regulations, as you may find there is additional help and support available. 
4. Be prepared to adapt and pivot quickly in response to changing circumstances.
5. Seek professional advice and support from experts in your field, including insolvency practitioners, financial advisors, and HR specialists.

While the pandemic has posed unprecedented challenges for businesses in the UK, it has also highlighted the resilience and creativity of the business community.

By staying informed, agile, and proactive, you can navigate the uncertain waters of the post-COVID economy and emerge stronger on the other side.

Has the COVID-19 pandemic impacted your business, or do you still have an outstanding bounce-back loan? 

Arrange a chat with Fortis to find out what action you can take to put your business in the best possible position moving forward. 

Helpful Business Tips: Managing Stress

Running a business can be stressful.

In fact, stress is a guarantee, especially during times of uncertainty or financial difficulty.

We get it.

And when times are tough, taking care of your well-being seems to be on the back burner. 

But managing your stress levels to avoid burnout and make sound decisions for your business is essential. 

We've collated some valuable tips to help you manage stress during challenging times:

1. Get Moving: Regular exercise, healthy eating, and adequate sleep can all help reduce stress levels and boost your immune system. Prioritise sleep as much as possible; you’ll make better decisions and handle stress easier after 6-8 hours of rest.
2. More Mindfulness: Meditation, deep breathing, and yoga can help reduce stress and improve mental well-being. It also gives you time to detach from your current situation and gain clarity. 
3. Speak with Family and Friends: Talking to others and seeking emotional support can help reduce feelings of isolation and anxiety. Don’t bottle it up; talking is vital. 
4. Manage and Delegate: Prioritising tasks, delegating responsibilities, and setting realistic goals can help reduce feelings of overwhelm.
5. Don’t Skip Breaks: Regular breaks and time off can help reduce stress and improve productivity in the long run. You may think you don’t have time, but you do. Step away and come back refreshed. 
6. Ask for Help: Seeking professional help from a therapist, coach, or mentor can provide valuable guidance and support during challenging times. There’s no shame in asking for help. When you do, you’ll feel like a weight has been lifted.

Remember that managing stress is an ongoing process; nobody is perfect.

But prioritising self-care and well-being as a business owner is essential.

By taking care of yourself, you'll be better equipped to make sound business decisions, navigate challenges, and care for your employees. 

And when the stress gets too much, call Fortis.

We’re here to support you through difficult times and want you to know you’re never alone.

The initial conversation is entirely free and strictly confidential.

Looking Ahead

It may seem like all is lost now, but we will get through it.

Right now, it’s about keeping your head above water and riding out the storm.

But, as they say, “This too shall pass."

And at least we’ve got lighter evenings, sunnier days, and weekends in the beer garden to look forward to!

Stay positive, but remain vigilant and prepared for the potential challenges that may arise this year due to the current economic climate and the ongoing impact of the pandemic. 

We’re here when you need us, so don’t hesitate to get in touch if you have any questions. 

Have a great May, and here’s to the summer sun!

The Fortis Team

[email protected] | www.fortisinsolvency.co.uk | 0161 694 9955